Which of the following statement is incorrect?

a. All the answers are correct.

b. A pooling arrangement does not result in reduced risk (standard deviation) to the participants in the pool only when losses are perfectly positively correlated.

c. The standard deviation of the distribution of losses for each individual is lower compared to the case of a pooling arrangement.

d. The amount of average expected losses stay the same as more participants are added to a pooling arrangement, provided the losses are uncorrelated across participants.

e. Insurance companies are institutions that economize on the contracting costs associated with the pooling arrangements, including distribution, underwriting, and loss adjustment.